In legal system, there is a theory that not one innocent should be punished even if ten guilty get away. In economics, there is a cost benefit analysis. In politics, there is something called gullibility.
All fancy folks in office talked about their uber drivers and maids having bank accounts and digital payments. I wonder how in a country like ours there are people who are so detached from reality – it’s the poor people’s fault they are so backward na, ab kuch bada karoge toh thodi takleef hogi na, dekho kam se kam terrorism toh khatm ho jayega na ….
Given the credibility Raghuram Rajan has, the establishment tried to pass off his tacit agreement. Thankfully, he came out and denied the same also said that the benefits from this step is not worth the mayhem, economic instability and unforeseen effects that may come.
Then, there is the issue of timing. Any idiot would tell you that if you have to pull currency from the market, do it at a time when the market is not inundated with cash. There are economic cycles, even within the same year. The govt decided to do it just when the crops were harvested and farmers were plush with cash and needed to buy seeds for the rabi crop. It is also the beginning of the marriage season – the biggest Indian industry that employs lakhs. It is majorly dependent on cash. So, why did the govt chose this time? Elections, anywhere?
Already a few have died, one from shock, another from misinformation. Some are stuck in hospitals, some on roads, some in thin air. All for the ghost black money, that no one has seen, no one has an account of, and no one will ever know about.
Some economists had suggested better methods of phasing out currency but “LOOK I AM SO STRONG” man of ours has no patience for effective measures. It must have drama, political mileage and showmanship.
Abhi toh UP, Punjab aur Goa ka sawaal hai, baaki befaltu ka bawaal hai